In establishing the partnership, ProLogis is continuing a strategy that is key for US companies to enter foreign markets---adopting a local partner. K Raheja Corp. is a private, family-owned firm founded in 1956 and now boasting more than 6,000 employees. It develops office, retail, hotel and residential, with an annual construction docket of more than six million sf. To date, it has topped 2,200 project completions, including buildings for Armonk, NY-based IBM Global Services, New York City giant Morgan Stanley, the UK's HSBC Holdings plc, Nokia Corp. of Finland, New York City-headquartered Accenture Ltd., Redwood City, CA-based Oracle Corp. and Citigroup Inc., also New York City headquartered.

"The majority of the existing distribution space in India is functionally obsolete," C.L. Raheja, chairman of the private company, says in the release,"and we believe this new partnership will be successful in meeting the growing demand for high-quality logistics facilities here."

The uptick is due in part to "the rapid growth of the country's middle class," Malkani says. The trickledown effect from the surge in residential and retail space has "increased demand for modern, efficient facilities for domestic distribution," he adds. "By working closely with K Raheja Corp, a leading developer with a deep understanding of the Indian property markets, and leveraging ProLogis industrial development expertise, we will be able to capitalize on this emerging need for high-quality space."